Telegram is still in confrontation with the SEC, and it suggests that TON is a security
The critical situation between Telegram and the United States Securities and Exchange Commission (SEC) took another step forward. The market regulator now claims that the popular messaging company, its upcoming Gram token, classifies as securities and therefore should be under established regulations.
The controversy surrounding Telegram's TON blockchain and its native cryptocurrency, Gram, continues. The SEC recently filed another complaint in the Southern District of New York.
This time, the market regulator indicates that Pavel Durov's company knew that Gram Token will be a guarantee. As such, you must comply with the regulations already in place, as security tokens are tradable financial assets that require personal identifications.
[amazon box="B07ZCZ9Z6J"]Gram is a security, they claim
In the new filing submitted to the US court, one particular email raises awareness. It was purportedly sent to an investor’s accountant on March 6, 2019. A Telegram official, Shyam Parekh, reported that the investor was entitled to 72,835,916.68 grams and that “the Fund has clear title to the said securities.” In the same email, he also notes that “the securities are not pledged.”
After Telegram raised $1.7 billion with its token sale in 2018, the SEC deemed it illegal because Gram had no prior registration in any jurisdiction. The commission requested access to the company's financial records, which was initially denied.
However, the court later ruled that Telegram had to disclose all banking details related to the token sale, the TON blockchain, and the Gram token. The company has until February 26, 2020, to provide the information.
Liquid stops sale of Grams
One of the consequences of Telegram's legal troubles with the SEC came from the Japanese cryptocurrency exchange Liquid. The latter initially held a Gram token sale in July 2019. At the time, TON's mainnet was anticipated to launch before the end of October 2019.
With the further delay and the actual launch date still unknown, Liquid canceled the sale and will refund all investors who participated in it.
“The Gram Token Sale on Liquid has been cancelled, and all funds previously held in Liquid custody have been returned to Liquid users who participated in the Gram Token Sale.”
According to the Gram Token Sale Terms of Sale, Liquid must return all funds committed by Liquid users in the Gram Token sale due to the TON mainnet not being launched before November 30, 2019.”
